Global Corn Group Limited — Interim / Quarterly Report 2013

Aug 29, 2013

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

GLOBAL SWEETENERS HOLDINGS LIMITED 大成糖業控股有限公司 *

(incorporated in the Cayman Islands with limited liability)

(Stock code: 03889)

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2013

FINANCIAL HIGHLIGHTS

	Six months ended	Six months ended
		30 June
	2013	2012	Change %
	(Unaudited)	(Unaudited)
		(Restated)
Revenue (HK$’Mn)	2,095	2,261	(7.3)
Gross profit (HK$’Mn)	98	181	(45.7)
Loss before tax from continuing operations
(HK$’Mn)	(100)	(22)	N/A
Loss for the period from a discontinued operation
(HK$’Mn)	(2)	(78)	N/A
Net loss from ordinary activities attributable to
shareholders (HK$’Mn)	(110)	(107)	N/A
Basic loss per share (HK cents)	(7.17)	(7.01)	N/A
Basic loss per share from continuing operations (HK
cents)	(7.02)	(2.14)	N/A
Interim dividend per share (HK cents)	Nil	Nil	N/A

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The board (“Board”) of directors (“Directors”) of Global Sweeteners Holdings Limited (the “Company”) hereby announces the unaudited consolidated interim results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 June 2013 (the “Period”).

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2013

Notes CONTINUING OPERATIONS REVENUE 4 Cost of sales GROSS PROFIT Other income and gains 4 Selling and distribution expenses Administrative expenses Other expenses Finance costs 5 Share of losses of joint ventures LOSS BEFORE TAX FROM CONTINUING OPERATIONS 6 Income tax expense 7 LOSS FOR THE PERIOD FROM CONTINUING OPERATIONS DISCONTINUED OPERATION Loss for the period from a discontinued operation 8 LOSS FOR THE PERIOD OTHER COMPREHENSIVE INCOME Other comprehensive income to be reclassified to profit or loss in subsequent periods: Exchange difference on translation of financial statements of operations outside Hong Kong TOTAL COMPREHENSIVE LOSS FOR THE PERIOD

Six months ended 30 June 2013 2012 (Unaudited) (Unaudited) HK$’000 HK$’000 (Restated) 2,095,321 2,260,746 (1,996,912) (2,079,486) 98,409 181,260 13,955 35,764 (107,147) (117,105) (51,004) (49,632) (96) (150) (54,060) (70,558) — (1,324) (99,943) (21,745) (7,345) (11,093) (107,288) (32,838) (2,377) (78,268) (109,665) (111,106) 21,260 — (88,405) (111,106)

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Notes LOSS ATTRIBUTABLE TO: Owners of the parent Non-controlling interests TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO: Owners of the parent Non-controlling interests LOSS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT 9 Basic — For loss for the period — For loss from continuing operations Diluted — For loss for the period — For loss from continuing operations	Six months ended 30 June 2013 2012 (Unaudited) (Unaudited) HK$’000 HK$’000 (Restated) (109,546) (107,055) (119) (4,051) (109,665) (111,106) (88,212) (107,055) (193) (4,051) (88,405) (111,106) HK(7.17) cents HK(7.01) cents HK(7.02) cents HK(2.14) cents HK(7.17) cents HK(7.01) cents HK(7.02) cents HK(2.14) cents

Details of the dividends proposed for the Period are disclosed in note 10 to the condensed consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2013

Notes NON-CURRENT ASSETS Property, plant and equipment Prepaid land lease payments Deposits paid for acquisition of property, plant and equipment Goodwill Other intangible assets Deferred tax assets Total non-current assets CURRENT ASSETS Inventories Trade and bills receivables 11 Prepayments, deposits and other receivables Due from the immediate holding company Due from fellow subsidiaries Pledged deposits Cash and cash equivalents Total current assets CURRENT LIABILITIES Trade and bills payables 12 Other payables and accruals Interest-bearing bank borrowings Due to fellow subsidiaries Due to the ultimate holding company Tax payable Total current liabilities NET CURRENT ASSETS	30 June 2013 (Unaudited) HK$’000 1,613,962 222,225 11,197 183,538 3,243 2,047 2,036,212 1,469,089 485,112 471,323 21,516 276,324 60,000 470,077 3,253,441 527,525 213,214 1,673,012 447,242 28,587 26,764 2,916,344 337,097	31 December 2012 (Audited) HK$’000 1,612,495 223,864 23,810 183,538 3,243 2,022 2,048,972 1,065,427 597,585 296,504 21,408 645,895 — 557,551 3,184,370 78,018 177,675 1,478,642 688,736 26,739 27,729 2,477,539 706,831

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Notes TOTAL ASSETS LESS CURRENT LIABILITIES NON-CURRENT LIABILITIES Interest-bearing bank borrowings Deferred tax liabilities Deferred income Total non-current liabilities Net assets EQUITY Equity attributable to owners of the parent Issued capital 13 Reserves Non-controlling interests Total equity	30 June 2013 (Unaudited) HK$’000 2,373,309 25,603 111,029 1,128 137,760 2,235,549 152,759 2,088,761 2,241,520 (5,971) 2,235,549	31 December 2012 (Audited) HK$’000 2,755,803 323,025 107,696 1,128 431,849 2,323,954 152,759 2,176,973 2,329,732 (5,778) 2,323,954

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NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2013

1. CORPORATE INFORMATION

The interim condensed consolidated financial statements of Global Sweeteners Holdings Limited (the “Company”) and its subsidiaries (hereafter referred to as the “Group”) for the six months ended 30 June 2013 are authorised for issue in accordance with a resolution of the directors (the “Directors”) passed on 29 August 2013.

The Company was incorporated in the Cayman Islands under the Companies Law, Cap 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands as an exempted company with limited liability on 13 June 2006. The principal activity of the Company is investment holding. The registered office address of the Company is Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman KY1-1111, Cayman Islands. The principal place of business of the Company in Hong Kong is located at Unit 2403, Admiralty Centre, Tower II, No. 18 Harcourt Road, Hong Kong. The Group was principally engaged in the manufacture and sale of corn refined products and corn-based sweetener products. There were no changes in the nature of the Group’s principal activities during the Period.

The Company is a subsidiary of Global Corn Bio-chem Technology Company Limited (the “immediate holding company” or “Global Corn Bio-chem”), a company incorporated in the British Virgin Islands. In the opinion of the Directors, the ultimate holding company is Global Bio-chem Technology Group Company Limited (the “ultimate holding company”), a company incorporated in the Cayman Islands whose shares are also listed on the main board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).

2. BASIS OF PREPARATION AND ACCOUNTING POLICIES

Basis of preparation

The interim condensed consolidated financial statements have been prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on the Stock Exchange and Hong Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2012.

As at 30 June 2013, the Group was unable to comply with certain of the financial covenants of a long term bank loan of RMB200 million (equivalent to HK$250 million) (“1st Loan”) and another short term bank loan of RMB200 million (equivalent to HK$250 million) (“2nd Loan”). The breach of covenants of the 1st Loan and the 2nd Loan had triggered cross default of two other short term bank loans (the “3rd Loans”) in the aggregate principal amount of RMB380 million (equivalent to HK$475 million). All of the 1st Loan, 2nd Loan and 3rd Loans were classified as short term bank borrowings as at the end of the reporting period. Subsequent to the end of the reporting period, in August 2013, the Group repaid the 1st Loan in full and the related loan agreement had been terminated since then. With respect to the 2nd Loan, the Group obtained a written confirmation from the bank for the relaxation and adjustment of

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the breached financial covenant. The Directors of the Company considered that as the Group has ceased to be in material breach of the loan agreements related to the 1st Loan and the 2nd Loan, the Group has ceased to be in breach of the cross default provisions of the 3rd Loans at the date of this report.

The Directors considered that the Group’s inability to comply with such covenants will not result in any liquidity issue to the Group and the Group will have adequate working capital to finance its operations. Accordingly, these financial statements have been prepared on a going concern basis.

Significant accounting policies

Except as described below, the accounting policies adopted in the preparation of the interim condensed consolidated financial statements are the same as those used in the annual financial statements for the year ended 31 December 2012. The Group has adopted the following new and revised HKFRSs for the first time for the current period’s financial statements.

HKFRS 1 Amendments	Amendments to HKFRS 1_First-time Adoption of Hong Kong_
	Financial Reporting Standards — Government Loans
HKFRS 7 Amendments	Amendments to HKFRS 7_Financial Instruments:_
	Disclosures — Offsetting Financial Assets and Financial Liabilities
HKFRS 10	Consolidated Financial Statements
HKFRS 11	Joint Arrangements
HKFRS 12	Disclosure of Interests in Other Entities
HKFRS 10, HKFRS 11 and	Amendments to HKFRS 10, HKFRS 11 and HKFRS 12_— _Transition
HKFRS 12 Amendments	Guidance
HKFRS 13	Fair Value Measurement
HKAS 1 Amendments	Amendments to HKAS 1_Presentation of Financial Statements_
	— Presentation of Items of Other Comprehensive Income
HKAS 19 (2011)	Employee Benefits
HKAS 27 (2011)	Separate Financial Statements
HKAS 28 (2011)	Investments in Associates and Joint Ventures
HK(IFRIC)-Int 20	Stripping Costs in the Production Phase of a Surface Mine
Annual Improvements	Amendments to a number of HKFRSs issued in June 2012
2009-2011 Cycle

Other than as further explained below regarding the impact of amendments to HKAS 1, amendments to HKFRS 7 and Annual Improvements 2009-2011 Cycle , the adoption of these new and revised HKFRSs has no significant financial effect on these interim condensed consolidated financial statements and there have been no significant changes to the accounting policies applied in these financial statements.

The HKAS 1 Amendments introduce a grouping of items presented in other comprehensive income (OCI). Items that could be reclassified (or recycled) to profit or loss at a future point in time (e.g., net gain on hedge of net investment, exchange differences on translation of foreign operations, net movement on cash flow hedges and net loss or gain on available-for-sale financial assets) now have to be presented separately from items that will never be reclassified (e.g., actuarial gains and losses on defined benefit plans and revaluation of land and buildings). The amendment affected presentation only and had no impact on the Group’s financial position or performance.

The HKFRS 7 Amendments require an entity to disclose information about rights to set-off and related arrangements (e.g., collateral agreements). The disclosures would provide users with information that

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is useful in evaluating the effect of netting arrangements on an entity’s financial position. The new disclosures are required for all recognised financial instruments that are set off in accordance with HKAS 32 Financial instruments: Presentation. The disclosures also apply to recognised financial instruments that are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are set off in accordance with HKAS 32. The amendments affected disclosure only and had no impact on the Group’s financial position or performance.

The Annual Improvements to HKFRSs 2009-2011 Cycle issued in June 2012 sets out amendments to a number of HKFRSs, among which, HKAS 34 clarifies the requirements relating to segment information for total assets and liabilities for each reportable segment to enhance consistency with the requirements in HKFRS 8 Operating Segments . Total assets and liabilities for a reportable segment need to be disclosed only when the amounts are regularly provided to the chief operating decision maker and there has been a material change in the total amount disclosed in the entity’s previous annual consolidated financial statements for that reportable segment. The Group provides this disclosure as total segment assets were reported to the chief operating decision maker (CODM). As a result, the Group now also includes disclosure of total segment assets and segment liabilities as these are reported to the CODM.

The Group has not applied the following new and revised HKFRSs, that have been issued but are not yet effective, in the interim condensed consolidated financial statements:

HKFRS 9	Financial Instruments 2
HKFRS 10, HKFRS 12 and	Amendments to HKFRS 10, HKFRS 12 and HKAS 27	(2011) —
HKAS 27 (2011) Amendments	Investment Entities 1
HKAS 32 Amendments	Amendments to HKAS 32_Financial Instruments: Presentation —_
	Offsetting Financial Assets and Financial Liabilities	1
HKAS 36 Amendments	Amendments to HKAS 36_Impairment of Assets — Recoverable_
	Amount Disclosures for Non-Financial Assets 1
HKAS 39 Amendments	Amendments to HKAS 39_Financial instruments: Recognition and_
	measurement — Novation Derivatives and Continuation of Hedge
	Accounting 1
HK(IFRIC)–Int-21	Levies 1

1 Effective for annual periods beginning on or after 1 January 2014

2 Effective for annual periods beginning on or after 1 January 2015

Management is in the process of making an assessment of the impact of these new and revised HKFRSs upon initial application. So far, the Company considers that these new and revised HKFRSs are unlikely to have a significant impact on the results and the financial position of the Group.

3. SEGMENT INFORMATION

For management purposes, the Group is organised into business units based on their products and has two reportable operating segments as follows:

• (i) the corn refined products segment engages in the manufacture and sale of corn starch, gluten meal, corn oil and other corn refined products; and

• (ii) the corn based sweetener products segment engages in the manufacture and sale of glucose syrup, maltose syrup, high fructose corn syrup, crystallised glucose and maltodextrin.

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The management monitors the results of its operating segments separately for the purpose of making decisions in relation to resources allocation and performance assessment. Segment performance is evaluated based on reportable segment profit/(loss), which is a measure of adjusted profit/(loss) before tax. The adjusted profit/(loss) before tax is measured consistently with the Group’s profit/(loss) before tax except that bank interest income and finance costs as well as corporate gains and expenses are excluded from such measurement.

Segment assets exclude cash and cash equivalents and other unallocated corporate assets as these assets are managed on a group basis.

Segment liabilities exclude interest-bearing bank borrowings, the amount due to the ultimate holding company and other unallocated corporate liabilities as these liabilities are managed on a group basis.

Intersegment sales and transfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices.

The Group’s revenue is derived from customers based in the mainland of the People’s Republic of China (“Mainland China”) and in regions other than Mainland China. The geographical information is another basis on which the Group reports its segment information.

On 21 December 2012, the Company announced the decision of the Directors to exit its retail beef business. Accordingly, the retail beef business was treated as a discontinued operation and was not included in the segment information.

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3. SEGMENT INFORMATION (Continued)

(a) Business units information

				Corn based sweetener	Corn based sweetener	Corn based sweetener
	Corn refined		products	products			Total
			Six months		ended 30 June
	2013		2012	2013		2012	2013			2012
	(Unaudited)		(Unaudited) (Unaudited)			(Unaudited)	(Unaudited)		(Unaudited)
	HK$’000		HK$’000	HK$’000		HK$’000	HK$’000			HK$’000
										(Restated)
Segment revenue:
Sales to external customers	977,669		996,282	1,117,652		1,264,464	2,095,321			2,260,746
Intersegment sales	266,066		192,225	—		—	266,066			192,225
	1,243,735		1,188,507	1,117,652		1,264,464	2,361,387			2,452,971
Reconciliation:
Elimination of intersegment sales							(266,066)			(192,225)
Revenue from continuing operations							2,095,321			2,260,746
Segment results	(59,430)		(39,052)	5,321		53,200	(54,109)			14,148
Reconciliation:
Bank interest income							1,210			1,100
Unallocated gains							12,745			34,664
Corporate and other unallocated expenses							(5,729)			(1,099)
Finance costs							(54,060)			(70,558)
Loss before tax from continuing operations							(99,943)			(21,745)
				Corn based sweetener
	Corn refined		products	products			Total
	30 June	31 December		30 June	31 December		30 June	31		December
	2013		2012	2013		2012	2013			2013
	(Unaudited)		(Audited) (Unaudited)			(Audited)	(Unaudited)			(Audited)
	HK$’000		HK$’000	HK$’000		HK$’000	HK$’000			HK$’000
Segment assets	2,367,853		2,298,973	2,092,864		2,049,536	4,460,717			4,348,509
Reconciliation:
Elimination of intersegment receivables							(37,334)			(123,110)
Cash and cash equivalents and pledged deposits							530,077			557,551
Corporate and other unallocated assets							328,137			443,707
Assets related to a discontinued operation							8,056			6,685
Total assets							5,289,653			5,233,342
Segment liabilities	657,664		626,678	355,846		276,000	1,013,510			902,678
Reconciliation:
Elimination of intersegment payables							(37,334)			(123,110)
Interest-bearing bank borrowings							1,698,615			1,801,667
Corporate and unallocated liabilities							378,139			326,991
Liabilities related to a discontinued operation							1,174			1,162
Total liabilities							3,054,104			2,909,388

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(b) Geographical information

			Regions other than	Regions other than
	Mainland	China	Mainland	China	Consolidated
			Six months ended 30 June
	2013	2012	2013	2012	2013	2012
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	HK$’000	HK$’000	HK$’000	HK$’000	HK$’000	HK$’000
		(Restated)				(Restated)
Segment revenue:
Sales to external
customers	1,960,903	2,164,531	134,418	96,215	2,095,321	2,260,746

4.

REVENUE, OTHER INCOME AND GAINS

Revenue, which is also the Group’s turnover, represents the net invoiced value of goods sold, after allowances for returns and trade discounts.

An analysis of other income and gains from continuing operations is as follows:

Other income Bank interest income Sales of scrap and raw materials Exchange gains Government grants Others Gains* Gain on bargain purchase Exchange differences reclassified from reserves when the joint ventures became subsidiaries Fair value loss of investments in joint ventures	Six months ended 30 June 2013 2012 (Unaudited) (Unaudited) HK$’000 HK$’000 (Restated) 1,210 1,100 8,842 7,368 250 1,181 1,742 728 1,911 1,036 13,955 11,413 — 13,479 — 12,582 — (1,710) — 24,351 13,955 35,764

• Government grants during the period represented government rewards awarded to some subsidiaries located in Mainland China.

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5. FINANCE COSTS

An analysis of finance costs from continuing operations is as follows:

Interest on bank loans: Wholly repayable within five years Finance costs for discounted bills receivable _Less:_interest capitalised	Six months ended 30 June 2013 2012 (Unaudited) (Unaudited) HK$’000 HK$’000 55,310 67,961 900 4,510 (2,150) (1,913) 54,060 70,558

6. LOSS BEFORE TAX

The Group’s loss before tax from continuing operations is arrived at after charging/(crediting):

		Six months ended 30 June	Six months ended 30 June
		2013	2012
		(Unaudited)	(Unaudited)
	Notes	HK$’000	HK$’000
			(Restated)
Raw materials and consumables used		1,622,352	1,734,837
Depreciation		72,684	69,479
Amortisation of prepaid land lease payments		3,803	3,534
Employee benefits expense		39,427	34,665
Foreign exchange differences, net		(250)	(1,181)
Impairment of trade receivables	11	6	—
Reversal of impairment of trade receivables	11	(449)	(13)
Write-down of inventories to net realisable value		12,466	2,026
Fair value loss of investments in joint ventures		—	1,710

7. INCOME TAX EXPENSE

Current – Hong Kong Current – Mainland China Deferred Tax charge for the period	Six months ended 30 June 2013 2012 (Unaudited) (Unaudited) HK$’000 HK$’000 — — 4,790 9,906 2,555 1,187 7,345 11,093

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No provision for Hong Kong profits tax has been made as the Group did not generate any assessable profits arising in Hong Kong during the period.

The statutory tax rate for all subsidiaries in Mainland China was 25% for the six months ended 30 June 2013 (2012: 25%).

8. DISCONTINUED OPERATION

On 21 December 2012, the Company announced the decision of Directors to exit its retail beef business in order to eliminate the risks of quality assurance in view of the tightening food safety policy in Mainland China and enable the Group to channel its resources to the core corn based business.

The results of the retail beef business for the period are presented below:

	Six months	ended 30 June	ended 30 June
	2013		2012
	(Unaudited)		(Unaudited)
	HK$’000		HK$’000
Revenue	—		3,107
Cost of sales	—		(18,374)
Other income	—		3
Selling and distribution expenses	—		(480)
Administrative expenses	(2,377)		(4,632)
Other expenses	—		(57,892)
Loss before tax from the discontinued operation	(2,377)		(78,268)
Income tax	—		—
Loss for the period from the discontinued operation	(2,377)		(78,268)
The net cash flows incurred by the discontinued operation are as follows:
	Six months	ended 30 June
	2013		2012
	(Unaudited)		(Unaudited)
	HK$’000		HK$’000
Operating activities	(17)		4,662
Investing activities	—		(1,298)
Financing activities	—		(8,713)
Net cash outflow	(17)		(5,349)
Loss per share:
Basic, from the discontinued operation	HK(0.15) cents		HK(4.87) cents
Diluted, from the discontinued operation	HK(0.15) cents		HK(4.87) cents

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9. LOSS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT

The calculation of the basic loss per share for the period ended 30 June 2013 is based on the consolidated loss for the period attributable to equity holders of the parent of approximately HK$ 109,546,000 (six months ended 30 June 2012: HK$107,055,000) and the weighted average number of ordinary shares in issue during the period of 1,527,586,000 (six months ended 30 June 2012: 1,527,586,000).

No adjustment has been made to the basic loss per share amounts for the period ended 30 June 2013 and 2012 in respect of a dilution as the impact of the share options outstanding had an anti-dilutive effect on the basic loss per share amounts presented.

10. DIVIDEND

The Directors do not recommend the payment of any interim dividend for the six months ended 30 June 2013 (six months ended 30 June 2012: Nil).

11. TRADE AND BILLS RECEIVABLES

Trade receivables Bills receivable Impairment Total	30 June 2013 (Unaudited) HK$’000 484,233 83,669 (82,790) 485,112	31 December 2012 (Audited) HK$’000 492,852 186,938 (82,205) 597,585

The Group normally allows credit terms of 90 days to established customers and credit terms of 180 days were allowed to some major customers with long term business relationship and good credit history. The Group seeks to maintain strict control over its outstanding receivables. Overdue balances are reviewed regularly by the senior management.

Trade receivables are non-interest-bearing. Significant concentration of risk exists where the Group has material exposures to trade receivables from one customer located in Mainland China which accounted for 16% of the total trade and bills receivables as at 30 June 2013 (31 December 2012: three customers accounted for 26%).

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An aged analysis of the trade and bills receivables as at the end of the reporting period, based on the invoice date and net of provision, is as follows:

Within 1 month 1 to 2 months 2 to 3 months Over 3 months Total	30 June 2013 (Unaudited) HK$’000 203,508 163,334 48,289 69,981 485,112	31 December 2012 (Audited) HK$’000 223,500 184,826 79,331 109,928 597,585

The movements in provision for impairment of trade receivables are as follows:

Notes At 1 January 2013/1 January 2012 Impairment losses recognised 6 Impairment losses reversed 6 Exchange realignment At 30 June 2013/31 December 2012	2013 (Unaudited) HK$’000 82,205 6 (449) 1,028 82,790	2012 (Audited) HK$’000 12,703 69,376 (31) 157 82,205

The aged analysis of the trade and bills receivables that are not individually or collectively considered to be impaired is as follows:

Neither past due nor impaired Less than 1 month past due 1 to 3 months past due Over 3 months past due Total	30 June 2013 (Unaudited) HK$’000 441,717 12,463 16,024 14,908 485,112	31 December 2012 (Audited) HK$’000 547,661 19,466 18,573 11,885 597,585

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Receivables that were neither past due nor impaired relate to a large number of diversified customers for whom there was no recent history of default.

Receivables that were past due but not impaired relate to a number of independent customers that have a good track record with the Group. Based on past experience, the Directors are of the opinion that no provision for impairment is necessary in respect of these balances as there has not been any significant change in credit quality and the balances are still considered fully recoverable.

12. TRADE AND BILLS PAYABLES

Trade payables Bills payable Total	30 June 2013 (Unaudited) HK$’000 227,525 300,000 527,525	31 December 2012 (Audited) HK$’000 78,018 — 78,018

The Group normally obtains credit terms ranging from 30 to 90 days from its suppliers, except for the purchase of corn kernels from farmers, which is normally settled on a cash basis. The carrying amounts of trade payables approximate to their fair values.

An aged analysis of the trade and bills payables as at the end of the reporting period, based on the invoice date, is as follows:

Within 1 month 1 to 2 months 2 to 3 months Over 3 months Total	30 June 2013 (Unaudited) HK$’000 481,107 18,771 5,190 22,457 527,525	31 December 2012 (Audited) HK$’000 55,178 12,693 4,594 5,553 78,018

As at 30 June 2013, the Group’s bills payable were secured by time deposits of HK$60,000,000.

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13. SHARE CAPITAL

The following is a summary of the authorised and issued share capital of the Company:

Authorised: 100,000,000,000 (31 December 2012: 100,000,000,000) ordinary shares of HK$0.10 each Issued and fully paid: 1,527,586,000 (31 December 2012: 1,527,586,000) ordinary shares of HK$0.10 each	30 June 2013 (Unaudited) HK$’000 10,000,000 152,759	31 December 2012 (Audited) HK$’000 10,000,000 152,759

14. COMPARATIVE AMOUNTS

The comparative condensed consolidated statement of comprehensive income has been represented as if the operation discontinued during the second half of 2012 had been discontinued at the beginning of the comparative period (note 8).

MANAGEMENT DISCUSSION AND ANALYSIS

The Group is principally engaged in the production and sale of corn refined products and corn sweeteners, categorised into upstream and downstream products. The Group’s upstream products include corn starch, gluten meal, corn oil and other corn refined products. Corn starch is then refined downstream to produce various corn sweeteners which are classified into two categories: corn syrup (glucose syrup, maltose syrup and high fructose corn syrup) and corn syrup solid (crystallised glucose and maltodextrin). The Group is also engaged in the corn procurement business, which corn kernels are purchased directly from corn origination silos for cost savings.

BUSINESS ENVIRONMENT

The selling prices of the Group’s products are affected by the prices of their raw materials (principally corn kernels and corn starch), the demand and supply of each of the products and their respective substitutes in the market and the variety of product specifications.

Due to favourable climate conditions, it is anticipated that the corn harvest in the United States of America (“US”) shall outperform expectations in 2013. Consequently, international corn price has dropped to 489.5 US cents per bushel in June 2013. While in China, according to the National Bureau of Statistics of China, domestic corn harvest in 2012/13 exceeds 208 million metric tonnes (“MT”), representing an 8.0% increase comparing to the corresponding period last year. Notwithstanding the increased supply of corn kernels, as the demand for corn kernel remained strong in China, the average purchase price of corn kernels remained at approximately RMB2,004 per MT for the Period.

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The operating environment for the Group has been challenging during the Period. Economic growth in the People’s Republic of China (the “PRC”) continued to slow down with the growth rate dropping to 7.5% for the second quarter of this year as a result of the rise in production costs, tightened property policy and weakened export. On the other hand, the pace of global economic recovery remained slow, sentiment among buyers and manufacturers stayed conservative as reflected in China’s Purchasing Managers Index. The outbreak of H7N9 bird flu earlier this year has also put the feed industry further deep in the mire. In addition, the market is flooded with excess supply of corn starch as a consequence of drastic expansions of corn refineries since 2009 with the PRC Government easing its monetary policy. The average selling price of corn starch remained low at approximately RMB2,950 per MT by the end of the Period, putting the Group’s upstream business under pressure.

In respect of sugar price movement, after three consecutive years of declining cane sugar production since 2009, the production volume of cane sugar in China finally rebounded. As a result, the price of cane sugar, a substitute of the Group’s corn sweetener products, dropped to approximately RMB5,400 per MT by the end of the Period. On the other hand, international sugar price dropped to 16.8 US cents per pound by the end of June 2013 as a result of increased production in various regions. The discrepancy between domestic and international sugar prices also encouraged imports, which further pressured the prices of the Group’s sweetener products.

Despite an increasingly challenging operating environment for the Group, the Board is of the view that the Group is merely undergoing a transitional period. Considering the PRC sweeteners market is still in its rapid development stage with the consumption of sugar and sweeteners per capita being only half of the world average, it indicates a substantial room for growth in the sweeteners market. With the PRC’s economy continues to progress, urbanisation will take place in the developing cities and the living standards of the population is expected to improve. As one of the living necessities, demand for sweeteners will be least affected at times of economic fluctuations.

With the beginning of the tenure of the new Chinese Government that promotes stable and sustainable growth of the country, it is foreseen that such will lead to an era of industry consolidation and efficiency enhancement in the PRC. After more than a decade’s development, the Group has established leading position in the market and has laid a solid foundation with strong management team and a well-established sales and marketing network backed by an outstanding R&D and production team. The Group is confident that despite poor current market sentiment, it shall have the ability to withstand all challenges.

FINANCIAL PERFORMANCE

The Group’s consolidated revenue decreased by approximately 7.3% to approximately HK$2,095 million (2012: HK$2,261 million) while gross profit decreased by approximately 45.7% to HK$98 million (2012: HK$181 million) when compared to the corresponding period last year. The revenue decrease was mainly attributable to the decrease in average selling prices and sales volume. Furthermore, with high production costs and weak market selling prices, the Group’s net loss attributable to shareholders for the Period amounted to approximately HK$110 million (2012: HK$107 million).

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Upstream products

(Sales amount: HK$978 million (2012: HK$997 million))

(Gross profit: HK$7 million (2012: HK$7 million))

During the Period, no internal consumption of corn kernels were provided for upstream production (2012: 62,000 MT).

During the Period, the sales volume of corn starch and other corn refined products were approximately 150,000 MT (2012: 156,000 MT) and 163,000 MT (2012: 147,000 MT) respectively. Internal consumption of corn starch was approximately 87,000 MT (2012: 64,000 MT), which was used as raw material for production in the Group’s Changchun, Jinzhou and Shanghai production sites.

The average selling prices of corn starch dropped to approximately HK$3,295 per MT (2012: HK$3,320 per MT) while other corn refined products increased by approximately 2.2% to HK$2,732 per MT (2012: HK$2,674 per MT) as compared to the corresponding period last year. Cost of sales increased by approximately 3.3% which was mainly attributable to the increase in raw material costs and other manufacturing costs as a result of inflationary pressure in the PRC. Consequently, the corn starch segment recorded a gross profit margin of approximately 6.3% (2012: 7.6%) while other corn refined products segment recorded a gross loss margin of approximately 5.8% (2012: 8.5%) during the Period.

The Group’s upstream business has been hammered by the slowdown of China’s economic growth, weak export and excess supply in the market since the fourth quarter of 2011. This situation continued during the Period and is expected to continue in the second half of 2013.

Since the upstream segment is under the process of consolidation, the management believes the operating environment in China will only be recovering in year 2014.

Corn syrup

(Sales amount: HK$806 million (2012: HK$875 million))

(Gross profit: HK$72 million (2012: HK$137 million))

During the Period, revenue of high fructose corn syrup 42 (“HFCS 42”) increased by 98.2% to approximately HK$19 million (2012: HK$10 million) which was mainly attributable to the increase in sales volume by 76.7% to approximately 5,300 MT (2012: 3,000 MT). As a result, gross profit increased by 82.9% to approximately HK$2 million (2012: HK$1 million). However, the gross profit margin dropped to 13.0% (2012: 14.1%) owing to the decline in average selling price by 3.1% during the Period. The operating environment of high fructose corn syrup 55 (“HFCS 55”) was similar. It

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recorded a sales volume and revenue of approximately 21,000 MT and HK$82 million respectively during the Period (2012: 9,000 MT and HK$34 million) with a gross profit and gross profit margin of approximately HK$10 million and 12.9% (2012: HK$5 million and 14.0%) respectively.

During the Period, the average selling price of glucose syrup decreased by approximately 4.8% and the sales volume decreased to approximately 131,000 MT (2012: 158,000 MT) as compared to the corresponding period last year. Consequently, the revenue of glucose syrup dropped by approximately 21.0% to approximately HK$353 million (2012: HK$447 million).

The average selling price of maltose syrup during the Period increased slightly by approximately 2.1% while the sales volume decreased by 10.9% to approximately 98,000 MT (2012:110,000 MT) as compared to the corresponding period last year. As a result, the revenue of maltose syrup decreased by 8.3% to approximately HK$352 million (2012: HK$384 million).

Internal consumption of glucose syrup for downstream production during the Period decreased to approximately 24,000 MT (2012: 98,000 MT) which was mainly attributable to the decrease in production volume of crystallised glucose.

Aa a result of the significant increase in cost of production as compared to the corresponding period last year, the gross profit margin of glucose syrup and maltose syrup segments dropped to approximately 7.1% (2012: 15.1%) and 9.8% (2012: 16.8%) respectively.

During the Period, the Group sold approximately 109,000 MT (2012: 54,000 MT) of glucose syrup to Global Bio-chem Technology Group Company Limited (“GBT”) and its subsidiaries excluding the Group (together, the “GBT Group”).

Corn syrup solid

(Sales amount: HK$311 million (2012: HK$389 million))

(Gross profit: HK$19 million (2012: HK$37 million))

The revenue of corn syrup solid decreased by approximately 19.9% during the Period. It was mainly attributable to the decrease in sales volume. The average selling price of crystallised glucose remained stable while sales volume decreased by approximately 66.7% to 13,000 MT (2012: 39,000 MT). Consequently, the revenue of crystallised glucose decreased by approximately 66.7% to approximately HK$51 million (2012: HK$155 million).

During the Period, the average selling price of maltodextrin remained stable and sales volume increased by 10.8% to approximately 72,000 MT (2012: 65,000 MT). As a result, the revenue of maltodextrin increased by approximately 11.1% to approximately HK$260 million (2012: HK$234 million).

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During the Period, sales volume of the crystallised glucose segment shrank by 66.7% due to the weak market selling price and keen competition. As a result, unit cost of production increased by 19.5% and cyrstallised glucose segment recorded a gross loss of approximately HK$5 million (2012: gross profit HK$13 million) with a gross loss margin of 10.6% (2012: gross profit margin 8.1%). Maltodextrin segment recorded a gross profit of approximately HK$24 million (2012: HK$24 million) with a gross profit margin of 9.5% (2012: 10.3%).

During the Period, the Group sold approximately 400 MT (2012: 3,000 MT) of crystallised glucose to the GBT Group.

Export sales

During the Period, the Group exported approximately 45,000 MT (2012: 36,000 MT) of upstream corn refined products and approximately 7,000 MT (2012: 7,000 MT) of corn sweeteners; their export sales amounted to approximately HK$105 million (2012: HK$66 million) and HK$29 million (2012: HK$30 million) respectively, representing approximately 6.4% (2012: 4.3%) of total revenue of the Group.

As announced by the Company on 6 June 2013, the Group has entered into distribution agreement (“Distribution Agreement”) with Archer Daniels Midland Company (“ADM”), a company incorporated in Delaware, USA, for the distribution of certain sweetener products.

Pursuant to the Distribution Agreement, ADM has been appointed as the exclusive distributor for a term of one year commencing from June 2013 of certain sweetener products manufactured by the Group to various Asian countries, Australia and New Zealand subject to terms and conditions thereof.

The Board considers that the collaboration with ADM can expedite the business development and increase brand awareness of the Group in the sweetener market in Asia by leveraging on ADM’s extensive and well-established distribution network.

Other income, operating expenses, finance costs and income tax

Other income

During the Period, other income of the Group decreased by approximately 61.0% to HK$14 million (2012: HK$36 million). Such decrease was due to the gain on bargain purchase arising from the acquisition of the joint ventures of approximately HK$13 million and exchange differences reclassified from reserves when the joint ventures became subsidiaries of approximately HK$13 million in the six months ended 30 June 2012 were not applicable for the Period.

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Selling and distribution expenses

During the Period, the selling and distribution expenses representing 5.1% (2012: 5.2%) of the Group’s revenue decreased by 8.5% to approximately HK$107 million (2012: HK$117 million) which was mainly attributable to the decrease in sales volume of the Group.

Administrative expenses

During the Period, administrative expenses remained stable at HK$51 million (2012: HK$50 million), representing 2.4% (2012: 2.2%) of the Group’s revenue, which was a result of effective cost control of the Group.

Finance costs

During the Period, finance costs of the Group decreased to approximately HK$54 million (2012: HK$71 million) due to the decrease in bank borrowings of approximately HK$148 million.

Income tax

Although the Group recorded a net loss during the Period, certain subsidiaries in PRC incurred net profit and were subject to PRC enterprise income tax. As a result, income tax expenses amounted to approximately HK$7 million was provided (2012: HK$11 million).

Net loss attributable to shareholders

As a result of the high production costs and weaker than expected market selling prices, the Group recorded a net loss of approximately HK$110 million (2012: HK$107 million) during the Period.

FINANCIAL RESOURCES AND LIQUIDITY

Net borrowing position

The Group’s net borrowings decreased slightly to approximately HK$1,169 million (31 December 2012: HK$1,244 million) as at 30 June 2013 as a result of the cash inflow from operating activities of approximately HK$20 million.

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Turnover days, liquidity ratios and gearing ratios

Credit terms, normally 90 days, are granted to customers, depending on their credit worthiness and business relationships with the Group. As at 30 June 2013, out of the amounts due from fellow subsidiaries, approximately HK$185 million representing the trade nature portion (31 December 2012: HK$407 million) was taken into consideration in the calculation of trade receivables turnover days. During the Period, the trade receivables turnover days decreased to approximately 58 days (31 December 2012: 81 days) which was mainly attributable to the stringent control on credit terms that has been applied. Subsequent to the end of the reporting period, approximately HK$198 million of trade and bills receivables was settled.

Meanwhile, the outstanding trade related balances of approximately HK$152 million (31 December 2012: HK$411 million) as at 30 June 2013 arising from the purchase transactions with the GBT Group were classified as amounts due to fellow subsidiaries. Such balances were considered as trade payables for the calculation of trade payables turnover days. During the Period, trade payables turnover days increased to approximately 62 days (31 December 2012: 43 days) as part of the cash flow management.

Due to the increase in the inventory level of corn kernels in Jinzhou Yuancheng Bio-Chem Technology Co., Ltd. (“Jinzhou Yuancheng”), Changchun Jincheng Corn Development Co., Ltd. (“Changchun Jincheng”) and the two corn origination silos to approximately 465,000 MT (31 December 2012: 319,000 MT), the inventory turnover days had increased to approximately 133 days for the Period (31 December 2012: 94 days).

The current ratio as at 30 June 2013 decreased to approximately 1.12 (31 December 2012: 1.29) and quick ratio decreased to approximately 0.61 (31 December 2012: 0.86) due to the increase in short term bank borrowings as a result of relocation of long term borrowings amount to HK$289 million to short term ones. Gearing ratios in terms of net debts (i.e. net balance between bank borrowings and cash and cash equivalents) to equity was approximately 52.3% (31 December 2012: 53.5%). Gearing ratio remained at similar level due to the stringent control over operating cash flows during the Period. Interest coverage (i.e. EBITDA over finance costs) decreased to approximately 0.5 times (2012: 0.6 times) which is mainly attributable to the decrease in EBITDA by 35.1% to approximately HK$28 million (2012: HK$44 million).

Structure of interest bearing borrowings

As at 30 June 2013, the Group’s bank borrowings amounted to approximately HK$1,699 million (31 December 2012: HK$1,802 million), of which approximately 4.1% (31 December 2012: 3.9%) was denominated in Hong Kong dollars and approximately 2.2% (31 December 2012: 2.4%) was denominated in US dollar while the remainder was denominated in Renminbi. The average interest rate during the Period decreased to approximately 6.1% (2012: 7.2%) per annum as a result of the decrease in the PRC interest rate.

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Pursuant to a loan agreement entered into between Changchun Dihao Foodstuff Development Co., Ltd. (“Changchun Dihao”), which is an indirect wholly owned subsidiary of the Company, and China Construction Bank (“Changchun Lender”) in respect of a two-year fixed term loan in the amount of RMB200 million due in August 2014 guaranteed by GBT (“First Loan”), Changchun Dihao is required to satisfy certain financial covenants, among others, that its gearing ratio should not be higher than 75%, current ratio should not be below 1.0 and contingent liabilities should not be higher than 50% of its net asset value, failure to perform or comply with any of those financial covenants entitles the Changchun Lender to declare the outstanding principal amount, accrued interest and all other sums payable under the First Loan immediately due and payable.

As announced by the Company on 22 March 2013, Changchun Dihao has failed to fulfill certain financial covenants under the First Loan, namely, the gearing ratio, current ratio and contingent liabilities of Changchun Dihao as of 31 December 2012 as it failed to achieve the minimum ratio requirement as prescribed above. Such breach entitled the Changchun Lender to declare the outstanding principal amount, accrued interest and all other sums payable under the First Loan to become immediately due and payable. In addition, such breach may also trigger cross default provisions in other loan agreements entered into by the Group in the aggregate outstanding principal amount of approximately RMB280 million.

As announced by the Company on 27 August 2013, the Group has made an early repayment of the First Loan in full in mid August 2013, and therefore the loan agreement to which the First Loan related had been terminated since then. As a result, the Group has no longer been in material default of such loan agreement, and has ceased to be in breach of the cross default provisions of the other loan agreements entered into by the Group in the aggregate outstanding principal amount of approximately RMB280 million.

In addition, under the loan agreements entered into between Jinzhou Yuancheng, which is an indirect wholly owned subsidiary of the Company, and China Construction Bank in Jinzhou (“Jinzhou Lender”) in aggregate outstanding principal amount of RMB200 million (“Second Loan”), Jinzhou Yuancheng is required to satisfy certain financial covenants, failure to perform or comply with any of those financial covenants entitles the Jinzhou Lender to declare the outstanding principal amount, accrued interest and all other sums payable under the loan agreements immediately due and payable.

As at 30 June 2013, Jinzhou Yuancheng has failed to fulfill a financial covenant under the Second Loan. Such breach entitled the Jinzhou Lender to declare the outstanding principal amount, accrued interest and all other sums payable under the Second Loan immediately due and payable. In addition, such breach may also trigger cross default provisions in another loan agreement entered into by the Group in the aggregate outstanding principal amount of approximately RMB100 million.

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As announced by the Company on 27 August 2013, the Group obtained a written confirmation from the Jinzhou Lender for the relaxation and adjustment of the breached financial covenant with effect from early July 2013 and the Group has complied with such adjusted financial covenant since then. As the Group has no longer been in material default of such loan agreements since then, it has ceased to be in breach of the cross default provisions in another loan agreement entered into by the Group in the aggregate outstanding principal amount of RMB100 million.

The percentage of interest bearing borrowings wholly repayable within one year or on demand and in the second to the fifth years were approximately 98.5% (31 December 2012: 82.1%) and 1.5% (31 December 2012: 17.9%) respectively. The change in repayment pattern was mainly due to reallocation of long term bank borrowings to short term bank borrowings during the Period.

FOREIGN EXCHANGE EXPOSURE

Since most of the operations of the Group were carried out in the PRC in which transactions were denominated in Renminbi, the Group does not intend to hedge its exposure to foreign exchange fluctuations in Renminbi. However, the Group will constantly review the economic situation, development of business segments and overall foreign exchange risk profile, and will consider appropriate hedging measures in future when necessary.

FUTURE PLANS AND PROSPECTS

It is the Group’s mission to become one of the leading corn sweeteners manufacturers in Asia and a major player in the global market. To achieve this objective, the Group will strive to enlarge its market share, diversify its product mix, and enhance its capability in developing high value-added products and new applications through in-house research and development and strategic business alliance with prominent international market leaders.

As one of the largest corn sweetener producers in the PRC in terms of production capacity and production output, the Board believes that it is of utmost importance for the Group to maintain its leading position in the market in terms of production capacity and market share.

EXPANSION OF PRODUCTION CAPACITY

In terms of capacity expansion for the Group’s long term strategy, the Board intends to establish new production facilities in the proximities of the Group’s current production facilities and in other PRC locations. It is expected that the construction of these new production facilities will be undertaken by new subsidiaries of the Company or joint ventures with third parties.

To secure raw material supplies and match with the Group’s expansion in downstream corn sweeteners production in future, the Group commenced construction in building an additional 300,000 mtpa corn processing capacity in current Jinzhou corn refinery in August 2011 which is expected to complete by the second half of 2013.

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The Board estimates that substantial portion of the above expected capital expenditures will be incurred prior to the commencement of commercial production of the production facilities while the remaining amounts are expected to be settled within one year from the relevant dates of commencement of commercial production. The Board is of the view that the existing technology know-how of the Group is sufficient for such expansion. The expansion plans of the Group will be principally financed by the Group’s internal resources and bank borrowings.

At present, the Directors are of a prudent view that the Company should continue to observe market movements and assess from time to time the need and feasibility of capacity expansion.

NUMBER AND REMUNERATION OF EMPLOYEES

As at 30 June 2013, the Group has approximately 1,500 full time employees in Hong Kong and the PRC. The Group appreciates the correlation between human resources and its success, hence has placed great emphasis on the recruitment of qualified and experienced personnel to enhance Group’s production capability and products innovation. Remuneration is maintained at competitive levels with discretionary bonuses payable on a merit basis, which is in line with industrial practice. Staff benefits provided by the Group include mandatory fund, insurance schemes and performance related commissions.

INTERIM DIVIDEND

The Board has resolved not to recommend the payment of an interim dividend in respect of the Period (Six months ended 30 June 2012: Nil).

PURCHASES, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES

Neither the Company, nor any of its subsidiaries purchased, redeemed or sold any of the Company’s listed securities during the Period.

COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE AND MODEL CODE

The Company is committed to ensuring high standard of corporate governance for the interests of shareholders and devotes considerable effort in identifying and formalising best practices.

In the opinion of the Directors, the Company has complied with all code provisions in the Corporate Governance Code (the “CG Code”) as set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) during the six months ended 30 June 2013.

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The Company has adopted a code of conduct regarding the Directors’ securities transactions on terms no less exacting than the required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers (“Model Code”). Based on specific enquiry of the Directors, all Directors have confirmed to the Company that they have complied with the required standard set out in the Model Code and the Company’s code of conduct throughout the Period.

CORPORATE GOVERNANCE COMMITTEE

The Corporate Governance Committee of the Company (the “Corporate Governance Committee”) was established in accordance with the requirements of the CG Code for the purposes of reviewing the Company’s policies and practices on corporate governance and providing supervision over the Group’s compliance with relevant requirements under the CG Code, or other laws, regulations, rules and codes as may be applicable to the Group. The Corporate Governance Committee comprises one executive Director and two independent non-executive Directors. The chairman of the Corporate Governance Committee is Mr. Chan Yuk Tong. The other members of the Corporate Governance Committee are Mr. Ho Lic Ki and Mr. Lee Chi Yung.

The Corporate Governance Committee reviewed the Company’s policies and practices on corporate governance, and considered that the Company has complied with all code provisions in the CG Code during the six months ended 30 June 2013.

AUDIT COMMITTEE

The Audit Committee of the Company (the “Audit Committee”) was established in accordance with the requirements of the CG Code for the purposes of reviewing and providing supervision over the Group’s financial reporting process and internal controls with written terms of reference in compliance with the CG Code provisions. The Audit Committee comprises three independent non-executive Directors. The chairman of the Audit Committee is Mr. Chan Yuk Tong. The other members of the Audit Committee are Mr. Ho Lic Ki and Mr. Gao Yunchun.

The Audit Committee meets regularly with the Company’s senior management and the Company’s auditors to review the Company’s financial reporting process, the effectiveness of internal controls, audit process and risk management.

The interim results of the Group for the Period have not been audited, but have been reviewed by the Company’s auditors, Ernst & Young, and the Audit Committee.

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PUBLICATION OF INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT

This announcement is published on the website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and on the website of the Company at www.global-sweeteners.com under “Investor Relations”.

The Interim Report 2013 of the Company will be dispatched to the shareholders of the Company and available for viewing on the website of Hong Kong Exchanges and Clearing Limited at www. hkexnews.hk and on the website of the Company at www.global-sweeteners.com under “Investor Relations” in due course.

On behalf of the Board Global Sweeteners Holdings Limited Kong Zhanpeng Chairman

Hong Kong, 29 August 2013

As at the date of this announcement, the Board comprises three executive directors, namely, Mr. Kong Zhanpeng, Mr. Zhang Fazheng and Mr. Lee Chi Yung and three independent non-executive directors, namely Mr. Chan Yuk Tong, Mr. Gao Yunchun and Mr. Ho Lic Ki.

• For identification purposes only

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